Compliance November 27, 2012
PBGC Maximum Benefit Increases in 2013
November 27, 2012 (PLANSPONSOR.com) – The PBGC announced that the yearly maximum guaranteed benefit for a 65-year-old retiree will increase in 2013.
Reported by Rebecca Moore
The maximum yearly guarantee for a 65-year-old retiree will increase $57,477.24, up from $56,000. The increase is not retroactive.
If a pension plan ends in 2013, but a retiree does not begin collecting benefits until a future year, the 2013 rates still apply. For plans that terminate as a result of bankruptcy, the maximum yearly rates are guided by the limits in effect on the day the bankruptcy started, not the day the plan ended.
The PBGC maximum guarantee is based on a formula prescribed by federal law. Yearly amounts are higher for people older than age 65 and lower for those who retire earlier or choose survivor benefits.
More about PBGC guarantees is at http://pbgc.gov/res/factsheets/page/guar-facts.html.